Alcatel-Lucent enters talks to sell cybersecurity division to Thales
Alcatel-Lucent (NYSE: ALU) is in talks to sell its cybersecurity unit to Thales as part of what it says is a broader partnership to address network security opportunities.
This potential agreement, which would include the transfer of Alcatel-Lucent's network security assets to Thales, would allow Alcatel-Lucent to expand its position in the cybersecurity segment, one of the tenets of CEO Michel Combes' Shift Plan.
The vendor would be able to offer new and existing customers a suite of security solutions that combine its integrated security expertise in telecommunication products with complementary services provided by Thales. Meanwhile, Thales would be able to grow its cybersecurity business.
Alcatel-Lucent said this partnership is subject to a final definitive agreement and will become effective after the consultation of representative bodies, the execution of definitive agreements and obtaining necessary permissions.
Today, Alcatel-Lucent runs its cybersecurity services and communications security activities in three sites in France--Villarceaux, near Paris, Toulouse and Orvault near Nantes--and in three other European countries (Germany, Belgium and UK).
The potential sale of the cybersecurity division is part of a broader plan Combes embarked on last year to sell $1.37 billion of assets to turn the company around by the end of 2015. In December it sold its public sector subsidiary LGS Innovations to Madison Dearborn Partners and CoVant for $200 million, for example.
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